FNCCI urges security, regular power supply

Industrialists today said that the industrial sector can survive only when the government gives a guarantee of security, provides adequate power supply and solves the problem of liquidity crunch.

Highlighting the problems currently facing Nepali industrialists, traders and entrepreneurs during the 57th annual general meeting (AGM) of Nepal Chambers of Commerce (NCC) here today, NCC president Surendra Bir Malakar said, "There is a lack of security, unending bandhs and load-shedding."

He said the growing Balance of Payments (BoP) deficit, shrinking exports, high interest rates and liquidity crunch are bleeding the economy white.

"With the BoP deficit at Rs 20 billion this fiscal year, productivity has declined by 0.5 per cent and in the first six months of the current fiscal year inflation has risen to 11.3 per cent while exports exceeded imports by six per cent," he added.

"The economy is in a critical situation because the government is concentrating more on remittances than on industrial development and giving more priority to revenue collection than private sector promotion," blamed the Chamber's president.

Federation of Nepalese Chambers of Commerce and Industry (FNCCI) president Kush Kumar Joshi seconded Malakar's argument and said that Nepali entrepreneurs do not have a conducive environment for operating their businesses due to lack of security, power shortage, high rate of interest and lack of liquidity.

"If the situation does not improve, the entrepreneurs will be compelled to shut down their businesses," he warned, adding, "It's the bitter truth, not a threat. If businesses collapse, it will be harder for them to take off again."

However, Prime Minister Madhav Kumar Nepal, as usual, assured them of security. "Nobody notices the improvement in security," he complained, adding that there has been a palpable improvement in security situation, "except for some incidents."

"The government is really trying to create a safer environment for industrialists and working for the establishment of industrial security force," Nepal said. "Since the nation is going through a transitional period, the economic sector is also not unaffected."

He, however, said that it was definitely shocking despite all the forecasts about load-shedding by Nepal Electricity Authority that the government was unable to increase the power supply or bring an alternative energy.

Award winners

KATHMANDU: Prime Minister Madhav Kumar Nepal on Sunday awarded the top performing exporters and cargo agents at the Nepal Chambers of Commerce (NCC) 57th annual general meeting (AGM).

In the cargo's category, Everest De Cargo, Himalayan Travels and Tours Pvt Ltd, Speed Way Cargo Pvt Ltd, Himali International Cargo Pvt Ltd and Muktinath Cargo Pvt Ltd won the award.

In the carpet export category, Tibet Carpet, Kathmandu Valley Carpet Industries Pvt Ltd and Shangrila Carpet and Handicraft Pvt Ltd received the award.

In the readymade garments export category, Nepal Fashion Pvt Ltd, United Colours Fashion Pvt Ltd and Everest Fashion bagged the award.

The winner of Pashmina exporting group was Everest Pashmina Knitting and Weaving.

In the handicrafts exporting category, Asiatic Traders and Exporters was selected to receive the award.

DHL Express Nepal Pvt Ltd and Kiran Shoes Manufactures bagged the award in recognition for highest exports to India and third countries on the basis of Certificate of Origin.

Nepal Chamber Excellence Award 2010 was awarded to Nepal Herbs and Herbal Products Association for its works in export promotion.